Tax Strategies

Proper tax strategies are an important element of pursuing your retirement dreams.

Understanding tax strategies and managing your tax bill should be part of any sound financial approach. Some taxes can be deferred, and others can be managed through tax-efficient investing.

With a careful and consistent preparation, you may be able to manage the impact of taxes on your financial efforts.

Important steps in the tax strategy process include:

Income Tax Projections

At Stoddard Financial, we take the following quote to heart:

“It’s not what you make that matters, it’s what you keep.”

We work with you on your income plan to withhold the correct amounts on your distributions, as well as where to most tax-efficiently take “unplanned” withdrawals.

Proactive Tax Planning

Once an income tax projection is done, we review how your assets are currently generating taxable income, and recommend changes based on your individual tax situation, your future potential tax bracket, etc.

The goal is to improve your “after-tax yield.” By knowing your “marginal” income tax bracket, both you and your advisor can make more informed tax-related decisions.

Cost Basis Recovery

Got Stock? Oftentimes, our clients own stock accumulated over years of exercising stock options, reinvesting dividends or via inheritance . . . yet they have no idea what the basis is for tax purposes. We help you determine your basis using your historical tax returns and an extensive database of historical stock prices and dividend payments. We provide you with a report that most CPA’s will accept as documentation to prepare your tax return.

Social Security Taxability Analysis

Many people think their Social Security isn’t subject to income taxes. Sometimes it isn’t, sometimes it is. The fact is, up to 85% of your Social Security can be taxed. It all depends on your total “provisional income”.

We can run a projection for you and help you devise a strategy to minimize the taxability of your Social Security benefits.

Before taking any specific action, be sure to consult with your tax professional. LPL Financial does not render tax advice.